A security gate outside the Tesla Motors Gigafactory east of Reno, Nevada.
David Calvert | The Washington Post | Getty Images
Tesla has notified workers at its Sparks, Nevada, battery plant that wages for some regular hourly employees there will increase by about 10% starting in early January 2024.
Tesla will increase low-end hourly wages from $20 to $22 and low-end hourly wages from $30.65 to $34.50, according to internal materials seen by CNBC and factory workers who were informed of “cost-of-living adjustments.” High end. It also streamlined some levels, such that workers in several levels currently earning between $26.20 and $30.65 an hour would be paid $34.50 an hour.
The adjustment also means wage increases of 10% or more for most hourly workers, ranging from an increase of $2 to $8.30 an hour.
The wage increase could help Tesla discourage workers from forming a union and pushing for a collective agreement in Nevada. Tesla did not immediately respond to a request for comment on the pay increase.
Earlier this year, the United Auto Workers won a record contract after contentious negotiations and a U.S. labor strike with General Motors, Ford Motor Co. and Chrysler owner Stellantis.As CNBC previously reported, UAW President Shawn Fain has repeatedly said he plans to shift the fight away from the Detroit automakers and toward Tesla, Toyota and other non-union automakers operating in the U.S.
In late October, workers at Tesla’s service and collision repair center in Sweden launched a strike that has now spread to Denmark, Finland and Norway, including workers involved in transportation, waste management and other services for Tesla. In recent weeks, one of Denmark’s largest pension funds announced it would sell its Tesla holdings as the U.S. giant refused to reach a deal with unions.
The electric car maker’s pledge to dramatically adjust the cost of living for workers at its Gigafactory in Nevada comes as Tesla faces increasing competition for talent and CEO Elon Musk has used public speeches and at X Posts on Twitter (formerly known as Twitter) have sparked one controversy after another. The social media platform he acquired late last year.
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